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FIAP’s Progress of the Pension Systems: The PAYGO pension systems in Argentina, Costa Rica and France are showing signs of crisis

10 November, 2020

According to the latest edition of FIAP’s Progress of the Pension Systems, the PAYGO pension systems in Argentina, Costa Rica and France are showing signs of crisis. Thus, for example, in Argentina, according to the report of the Congressional Budget Office, the majority of people over 45 will not be able to retire at the official retirement age, due to insufficient pension contributions. The report of the Argentine Social Development Institute (IDESA) also notes that the Sustainability Guarantee Fund (FGS) will only suffice for financing two months of deficit.

In Costa Rica, meanwhile, the Investigating Commission found that the reserves of the Disability, Aging and Death Regime (IVM) pension fund will not suffice for paying pensions by 2030.

In France, in turn, the social security expenditure deficit will multiply by 9 this year, to EUR 44.4 billion, following a deficit of EUR 5 billion in 2019.

For further details on these measures, please review the latest edition of FIAP’s Progress of the Pension Systems, here.

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